NEW DELHI – Prices of medium-grade sugar were up in Mumbai and Delhi today because of a rise in demand amid the ongoing summer season, traders said. Prices of sugar rose by 10 rupees per 100 kg in Delhi, while in Mumbai, the sweetener was quoted 4 rupees higher.

Onset of summer is very severe across the country, and the government's sale quota of sugar for May is very well thought of and is sufficient, keeping in mind the demand during this time of the year, National Federation of Cooperative Sugar Factories Managing Director Prakash Naiknavare said.

The Centre has set the maximum sugar sale quota for May at 2.1 mln tn.

On the other hand, sugar prices in Muzaffarnagar, Uttar Pradesh, fell by 20 rupees per 100 kg, while in Kolhapur, Maharashtra, they were down 6 rupees today.

"There is a big problem of transportation in Muzaffarnagar and it is likely to continue this week as wheat harvesting is going on in the state and nearby areas, so the sold sugar stocks could not be lifted… Despite stable demand, prices still fell," said Vijay Kapoor, a local trader.

On ICE Futures US, the most active July contract of raw sugar was at 11.93 cents per pound, down 0.7% from the previous close. The contract also hit a nearly one-week low of 11.87 cents earlier today. Sugar prices on ICE slipped below the 12-cent support level as there are ample supplies available.

"Sugar futures, priced this low, may provide a short-term boost to the ethanol market, with mills opting to sell to ethanol plants to reap a higher price. In turn, this may introduce supply tightness to other sugar consumers, which would then push prices back up," a media report said, quoting Marex Spectron.

Following are today's prices for medium-grade sugar, in rupees per 100 kg, in key wholesale markets, and the change from the previous close: